The ChatGPT Revolution - The Northridge Group

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FEATURE

BY BRENDAN READ,

CONTACT CENTER PIPELINE

THE CHATGPT REVOLUTION?

Will, and how, this new technology model help

contact centers?

MAY 2023

CONTACT CENTER PIPELINE

or the past several months the technology conversation

has been dominated by the emergence of ChatGPT, first

GPT-3, then GPT-3.5, and most recently (at presstime) GPT-

4. But could it revolutionize the contact center industry?

To get a handle on ChatGPT, its implications, benefits, challeng-

es, and best practices for contact centers we had a virtual con-

versation recently with Nathan Hart, Senior Director of Technol-

ogy, Solutioning & Data Analytics, The Northridge Group.

Q: WHAT IS CHATGPT, SPECIFICALLY CHATGPT BASED

ON GPT-4, AND WHAT LED TO ITS CREATION AND

BY WHOM?

A: ChatGPT, short for Chat-based Generative Pre-trained

Transformer, is a state-of-the-art artificial intelligence

(AI)-powered natural language processing (NLP) model cre-

ated by OpenAI, a company co-founded in 2015 to advance

digital intelligence in the way it can interact with humans.

The most recent version of ChatGPT, which is based on GPT-

4 and was released in March 2023, is OpenAI’s latest and most

advanced chatbot.

Open AI has developed what is known as open domain bots

that can understand nearly any question related to the sub-

ject matter of their design – in this case conversations.

This technology equips ChatGPT to hold conversations

about almost anything without any prior programming or

configuration. It has immense promise not only for enabling

people to talk with machines but also for improving custom-

er service, providing emotional support, and revolutionizing

key processes associated with other lines of work that are

currently done solely by humans.

THE CHATGPT REVOLUTION?

FEATURE

BY BRENDAN READ, CONTACT CENTER PIPELINE

WILL, AND HOW, THIS NEW TECHNOLOGY

MODEL HELP CONTACT CENTERS?

ILLUSTRATION PROVIDED BY ADOBE IMAGES

NATHAN HART

MAY 2023

From our research, GPT-4 is more sophisticated than any of

its predecessors:

• It can understand various types of information, including

images with complex entity recognition, which is a signifi-

cant improvement over its predecessor, GPT-3.5, which was

limited to text-based input.

• It has other powerful upgrades such as integrated intent

classifiers and specialized custom context preservation

with every sentence.

In addition, GPT-4 is more resistant to manipulation. It has

a greater capacity to remember information, allowing it to

respond with more accurate and relevant responses. GPT-4

is also proficient in multiple languages, making it more ac-

cessible and user-friendly for people from different linguistic

backgrounds.

Finally, GPT-4 enables users to customize their personalities

to meet their specific needs, which enhances its adaptability

and flexibility in different situations.

Q: WHAT ARE THE KEY FEATURES OF CHATGPT

BASED ON GPT-4?

A: ChatGPT provides a powerful set of features to enable the

creation of Conversational AI applications. It leverages natu-

ral language understanding and machine learning technology.

The key features of ChatGPT include a wide variety of

pre-trained models that can be used across various forms

of networking channels. It also has numerous deep learning

models, a configurable text generator refined on massive

datasets, customization capabilities that enable fine-tuning

to user-defined parameters, and easy integration with other

Conversational AI platforms.

ChatGPT’s state-of-the-art tools make it possible for users

to easily construct sophisticated Conversational AI applica-

tions quickly and efficiently. GPT-4 boasts some crucial ad-

vancements over its predecessors. These include the ability to

process images, a greater ability to avoid being tricked, a lon-

ger memory, more multilingual skills, and greater steerability.

Q: HOW DOES CHATGPT, BASED ON GPT-4, WORK?

A: ChatGPT uses NLP techniques to analyze and understand

text input and generate human-like responses. It was created

using AI techniques called transfer and generative learning.

Transfer learning allows a pre-trained machine learning

system to be adapted to another task. Generative learning

allows for tasks like text generation, conversation, and ques-

tion-answering, where the goal is to create new, original con-

tent that is coherent and contextually relevant.

The model was trained on massive data, allowing it to learn

patterns and relationships in language, and generate coher-

ent responses to a wide range of queries and topics. ChatGPT

was designed to be highly versatile and assist with various

tasks, from answering questions and providing recommenda-

tions to generating text and translations.

Users can interact with ChatGPT via text-based chat in-

terfaces, such as messaging platforms or websites that offer

chat functionality. The model uses machine learning algo-

rithms to continuously improve its performance and accuracy

based on user interactions and feedback.

But ChatGPT can do much more than just reply. For in-

stance, it can provide proactive suggestions, understand

past context, and proactively suggest answers. It can also be

easily integrated via APIs with popular apps such as Slack,

Instacart, Snapchat, or Facebook Messenger for easy access

across multiple platforms. ChatGPT utilizes deep learning al-

gorithms to learn from every conversation it has and become

smarter over time.

BENEFITS, CHALLENGES, AND

INTERACTION TYPES

Q: WHAT ARE THE BENEFITS OF GPT-4 AND ALSO ITS

CHALLENGES?

A: ChatGPT, based on GPT-4, can process conversations on a

human-like level. In addition to its impressive accuracy over

traditional methods of NLP, GPT-4 brings several advantag-

es to conversations, such as decreased time investments,

heightened interactivity and reactions, and increased speed

and fluency.

However, GPT-4 poses some challenges regarding security

and privacy risks. Because GPT-4 relies on trained databases to

generate responses, confidential information can be accessed

or misused without the knowledge of the user or the provider.

Therefore, when thinking about testing and implementing

GPT-4 within a contact center, users, such as data security

and infrastructure teams, must exercise caution by proper-

ly configuring their datasets and mitigating the risks to any

networks they use with strong authentication practices.

...CHATGPT...HAS IMMENSE

PROMISE NOT ONLY FOR

ENABLING PEOPLE TO TALK WITH

MACHINES BUT ALSO FOR

IMPROVING CUSTOMER SERVICE...

...GPT-4 POSES SOME CHALLENGES

REGARDING SECURITY AND PRIVACY

RISKS...CONFIDENTIAL

INFORMATION CAN BE ACCESSED OR

MISUSED WITHOUT THE KNOWLEDGE

OF THE USER OR THE PROVIDER.

CONTACT CENTER PIPELINE

Q: DO YOU THINK, THEN, THAT CHATGPT/GPT-4

COULD REVOLUTIONIZE THE CONTACT CENTER

INDUSTRY, GIVEN THE CHALLENGES LIKE ENSUR-

ING A HIGH QUALITY COMPETITIVE CX AND COP-

ING WITH STAFFING SHORTAGES? OR DO YOU

SEE IT MORE LIKE AN EVOLUTIONARY MOVE?

A: GPT-4 has the capacity to revolutionize the contact cen-

ter industry, yet reaching that goal will be a slow and evolu-

tionary process. Its potential to improve customer experience

(CX) by automating certain customer interactions, helping

with staffing shortages, and providing multilingual, round-

the-clock contact center support – all at reduced costs, is

nothing less than revolutionary.

However, before contact center agents can relinquish the

handling of routine tasks to GPT-4 so they can become more

efficient and focus on more complex interactions, various

challenges must be resolved, certain risks must be mitigated,

and a new level of trust in GPT-4’s responses will be neces-

sary. This will be an evolutionary process for the contact cen-

ter industry which could take up to two – five years.

AVAILABILITY AND SUPPLIERS

Q: WHEN DO YOU EXPECT CHATGPT/GPT-4 TO BE

READY FOR PRIME TIME? WHAT NEEDS TO BE

DONE AT THIS STAGE TO MAKE IT USABLE IN THE

CONTACT CENTER?

A: ChatGPT was initially developed as a high-end natural lan-

guage processor specifically designed to be used in contact

centers.

Currently, the technology is still undergoing beta testing

and evaluation, as developers work towards making it ready

for prime-time use. My estimation is that ChatGPT technol-

ogy will be appropriate for contact centers within the next

two to five years, but it will require extensive supervision and

act as a supplement to human associates.

To make ChatGPT optimally functional within customer

service operations, developers need to invest further in in-

creasing the accuracy of the AI’s natural language generation

capabilities and improving the overall quality of its simulated

conversational interaction with customers. They also need to

optimize its classification and object recognition performance.

Despite these challenges, careful handling of GPT-4 can un-

lock tremendous value for both users and providers by im-

proving efficiency and increasing the effectiveness of com-

munication strategies.

Q: COMPARE AND CONTRAST CHATGPT WITH OTH-

ER CUSTOMER AND ALSO INTERNAL EMPLOYEE

CHAT TECHNOLOGIES. DOES IT SUPPLEMENT OR

SUPPLANT OTHER CHAT TOOLS?

A: ChatGPT stands out from other available tools. Its features

make it more efficient than traditional customer service mes-

saging platforms.

For example, GPT-4’s NLP enables it to better understand

customer needs and respond quickly to requests. Addition-

ally, its capacity for personalized conversations allows com-

panies to provide more targeted customer care in real-time.

Many existing chat technologies still rely on simple scripts

and pre-programmed generic responses, which do not add

value to the conversation.

GPT-4 is uniquely positioned to supplement or even sup-

plant certain aspects of existing internal chat technologies

while improving overall efficiency. This makes it a highly

valuable tool for customers and employees alike (see chart).

Q: WHAT TYPES OF CUSTOMER INTERACTIONS: B2B

OR B2C, WILL CHATGPT PROVIDE THE MOST BEN-

EFITS OR CONVERSELY THE LEAST AND WHY?

A: I do not think there will be a huge difference in the way

ChatGPT will handle B2B and B2C customer interactions, so

the benefits it brings to contact center interactions for both

customer types will be similar.

GPT-4’s responses will be highly dependent on the type of

interactions it is exposed to. It will be good at responding to

simple interactions but will be less capable of offering appro-

priate responses to emotional issues that require the more

nuanced understanding that only human agents can provide.

Both B2B and B2C contact centers handle a full range of

simple and complex issues, so I anticipate that contact cen-

ter interactions for both customer types will benefit equally

from GPT-4.

GPT-4 HAS THE CAPACITY TO

REVOLUTIONIZE THE

CONTACT CENTER INDUSTRY,

YET REACHING THAT GOAL

WILL BE A SLOW AND

EVOLUTIONARY PROCESS.

MAY 2023

FEATURE

...THE TECHNOLOGY IS STILL

UNDERGOING BETA TESTING AND

EVALUATION, AS DEVELOPERS

WORK TOWARDS MAKING IT READY

FOR PRIME-TIME USE.

SALESFORCE

Salesforce has expanded its contact center platform by in-

troducing Einstein GPT, a generative AI CRM technology, that

delivers AI-created content across sales, service, marketing,

commerce, and IT interactions, at a hyper-scale.

With Einstein GPT, customers can connect data to OpenAI’s

advanced AI models and use natural-language prompts di-

rectly within their Salesforce CRM to generate content that

continuously adapts to changing customer information and

needs in real-time.

FIVE9

Five9, a provider of cloud contact center software, has intro-

duced two new products that use GPT 3.5 from OpenAI.

The first product, AI Insights, combines ChatGPT with re-

al-time transcription to automatically interpret and catego-

rize customer conversations. By grouping contacts by intent

or other traits, contact centers can identify opportunities to

improve automation and other processes.

The second product, “AI Summaries”, auto-summarizes

interaction transcripts and publishes them in the CRM to

streamline post-contact processing for agents.

According to Mike Burkland, Chairman and CEO of Five9, “these

new AI-powered offerings demonstrate Five9’s commitment

to continuous AI innovation, which is critical to the company’s

growth. The company’s AI and automation portfolio includes

speech analytics, workflow automation, and IVA solutions.”

ChatGPT is expected to play a significant role in fueling fur-

ther AI innovation at Five9. Its large language models offer

quick wins in custom data charting, trending, and routing, as

well as potential game-changing opportunities.

GENESYS

Genesys is currently beta-testing generative AI on its Cloud CX

platform for various use cases. These include new agent-as-

sist capabilities, such as summarization, which provides auto-

matically generated summaries for agents to accelerate their

work during wrap-up time following a voice call or a digital

interaction.

Other companies will likely follow suit but are proceeding

with caution. GPT-4’s knowledge base and language process-

ing capabilities far outpace other technology on the market,

but it still has limitations. Its responses, while remarkably ac-

curate and convincingly human, are based on the dataset it is

trained on, and they are not necessarily based on the truth or

the latest information.

Developers should test ChatGPT in a sandbox environment

that replicates a contact center environment before deploy-

ing it in contact centers. By enhancing all these aspects of

ChatGPT’s functionality, developers can make the technolo-

gy ready for use in real-world contact center operations and

provide novel opportunities for companies to interact more

effectively with customers.

The scenario is like that of driverless cars. The technolo-

gy for providing AI-powered accurate issue resolution will be

available, but some interactions will lack the nuance needed

to make customers comfortable. Customers will always ap-

preciate the human touch and the empathy that human as-

sociates are trained to provide.

Q: WHERE ARE THE CONTACT CENTER INDUSTRY

VENDORS ON CHATGPT?

A: ChatGPT is fast out of the gate and is rapidly evolving.

So, what you read at this moment could change in the next

instance. But here is what we have gathered, seen, and ana-

lyzed to date for our clients.

NICE

NICE appears to be the first contact center industry vendor

to move forward with this technology, announcing on Jan-

uary 26, 2023, that it will integrate its CXone Expert with

the generative modeling used in ChatGPT. CXone Expert is a

cloud-native customer service knowledge management solu-

tion that delivers answers for resolving customer issues.

The goal of integrating NICE CXone Expert with OpenAI’s

generative modeling is to ensure that the resulting answers

to customer self-service inquiries are not only quick and high-

ly accurate but that they are also semantically constructed in

a human-friendly manner that is easy to understand.

The technology should immediately route customers to the

right answers without the need for transfers or callbacks, cre-

ating self-service experiences that feel human without en-

gaging associates.

THE TECHNOLOGY FOR PROVIDING

AI-POWERED ACCURATE ISSUE

RESOLUTION WILL BE AVAILABLE,

BUT SOME INTERACTIONS WILL LACK

THE NUANCE NEEDED TO MAKE

CUSTOMERS COMFORTABLE.

CONTACT CENTER PIPELINE

COMPARISON OF TECHNOLOGIES

MAY 2023

Brendan Read is Editor of Contact Center Pipeline. He has been covering and

working in customer service and sales and for contact center companies

for most of his career. Brendan has edited and written for leading industry

publications and has been an industry analyst. He also has authored and

co-authored books on contact center design, customer support, and working

from home. Brendan can be reached at

brendan@contactcenterpipeline.com.

To ensure successful deployment, I would recommend set-

ting up a team dedicated to learning the ins and outs of chat-

bot conversations, so that they can design tactics to guide

the conversation when needed and create an exemplary user

experience.

If possible, customer contact organizations should consider

starting with the customer segment that is most receptive

to adopting new technology. Any issues that are identified

can then be resolved before expanding the deployment to

additional customer segments.

Additionally, organizations should define clear objectives

and success metrics early on so that they know precisely

what results are expected from the chatbot. Finally, to en-

sure user loyalty, organizations should routinely review and

update any content used within their bots to make sure it is

accurate and up to date with any feature changes or other

new developments.

ChatGPT based on GPT-4 is a powerful and innovative tech-

nology that has the potential to revolutionize customer ser-

vice and bring truly natural, conversational AI experiences to

customer contact organizations.

Created by top researchers in the field of AI, GPT-4 provides

a wide range of features and plug-in options to make it easier

for contact centers to incorporate it into their existing chat

tools or other channels. Security measures must be in place

for companies to use this technology safely and efficiently.

Although certain aspects of the technology need improve-

ment before GPT-4 is ready for prime time, and some vendors

have yet to start developing offerings, many leaders in the

contact center industry are already exploring how they can

leverage GPT-4 solutions.

Companies that are interested in this type of technology,

should therefore take careful precautionary steps before de-

ploying ChatGPT-like solutions, like by working with an expe-

rienced objective partner.

While contact center executives are excited about the pos-

sibilities of deploying this advanced level of AI for their chat-

bot solutions, some are concerned that overreliance on such

AI models could result in their contact centers unknowingly

delivering incorrect information to customers.

Many companies are working on ways to ensure the re-

sponsible use of this technology. In some cases, this may

mean tasking contact center associates with monitoring

where the technology gets things wrong and then feeding it

new information.

RECOMMENDATIONS

Q: WHAT IS INVOLVED WITH INSTALLING GPT-4 IN

THE CONTACT CENTER?

A: Installing GPT-4 in the contact center requires a clear strat-

egy. To get started, users will need to decide which channels

they want to incorporate – including any websites or apps

attached to the existing customer service infrastructure.

After this, data integration via API is necessary so the agents

can query information and offer the most efficient solutions.

Finally, training agents on GPT-4 is essential for maximizing

the tool’s potential to learn different conversational intents

and extract key customer information. With a well-thought-

out installation process, contact centers can benefit from a

much-improved CX with AI-driven solutions.

In summary, to incorporate ChatGPT into a contact center,

businesses need to choose a provider that meets their needs,

set up the chatbot, integrate it with other channels and data

sources, train the chatbot and agents, and monitor and opti-

mize its performance continually.

Q: WHAT ARE YOUR RECOMMENDATIONS TO

CUSTOMER CONTACT ORGANIZATIONS THAT ARE

INTERESTED IN DEPLOYING CHATGPT

SOLUTIONS?

A: Deploying ChatGPT solutions can be a great way for cus-

tomer contact organizations to streamline the CX and reduce

response times.

FEATURE

IF POSSIBLE, CUSTOMER

CONTACT ORGANIZATIONS

SHOULD CONSIDER STARTING

WITH THE CUSTOMER SEGMENT

THAT IS MOST RECEPTIVE TO

ADOPTING NEW TECHNOLOGY.

ENABLING A NEW GENERATION OF CX AND EX PROFESSIONALS to

create successful customer management strategies, develop

cutting-edge technologies, refine the skills necessary to advance

their career, and build a culture that advances the contact center

within the organization—that’s what we do.

Since 2009, Contact Center Pipeline has leveraged the insight of

today‘s notable CX and EX thought–leaders, along with our

advisory board, expert magazine authors, blog contributors,

and industry insiders; keeping our audience ahead of the trends

transforming the contact center and customer sales, service, and

support industries, improving outcomes, and the way companies

engage with their customers.

Contact Center Pipeline Magazine is published monthly digitally

and in print. For more information and to subscribe, visit our website.

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